Indiana Debt Collection

 Are Indiana or Kentucky debt collectors ringing your phone off the hook?

From: Kate
RE: Dealing with Kentucky or Indiana debt collection companies
Corydon, Southern Indiana
Thursday 08:39am

Kate Rieger Never Talk To an Indiana Debt Collection company on the phone!

Your experience with Indiana debt collection companies or Kentucky debt collectors can be brutal.  You have various forms of protection and many techniques available to deal with a good or bad debt collector.

There is a lot of information in this lesson, but the most important is in the next paragraph.  I'm putting it there in case you don't read further.  OK.  Here it is...

Never negotiate or have conversations with any debt collection company over the phone.  Never, ever believe anything a debt collector tells you.  They are paid to get money out of you and that's it.  They are not your buddy and never will be.  They could care less about improving your credit score.  Never, ever,  negotiate or have conversations with any debt collection company over the phone.  If you have already made the mistake of dealing with these folks over the phone then the next time they call tell them you are sending them a letter CERTIFIED MAIL RETURN RECEIPT with your terms.  Always communicate with collection companies in writing.

There is a huge difference in dealing with Kentucky or Indiana debt collection agencies and the original creditors. A collection agency must comply with the Fair Debt Collections Practices Act (FDCPA), but the original creditor does not. This lesson applies to third party debt collectors and not the original creditor. 

Here are the highlights of the FDCPA that are in place to protect you from unfair practices and abuse.

What debts are covered?

Personal, family, and household debts are covered under the Fair Debt Collection Practices Act rules for debt collection and bad debt collectors. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

Most negative debts that concern consumers are accounts that have gone into collection; not the 30 or 60 day delinquencies. When a debt goes into collections, the original creditor has written some of the debt and sold the remainder to a collection agency.

Who is a debt collector?

A debt collector or collection agency is any person who regularly provides debt collection services for others. This includes credit attorneys who collect debts on a regular basis. It does not include an individual working in the collection department for the original creditor company.

It’s actually in your favor to deal with an Indiana or Kentucky debt collection agency because the debts have been purchased for pennies on the dollar and the collection agency is looking for cash.

How may a debt collector contact you?

Debt collectors may contact you in person, by mail, telephone, telegram, or fax. However, debt collectors may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. Debt collectors may not contact you at work if you inform the collector that your employer disapproves of such contacts.

Can you stop a debt collector from contacting you?
You can stop debt collectors from contacting you by writing a letter to the collector telling them to stop. Once the debt collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action.

Sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

May a debt collector contact anyone else about your debt? 

If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

What must the debt collector tell you about the debt?
Within five days after you are first contacted, debt collectors must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

May a debt collector continue to contact you if you believe you do not owe money?
Debt collectors form any state (not just Kentucky or Indiana debt collection companies) may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

What types of debt collection practices are prohibited?
Harassment. Whether a good or bad debt collector, they may not harass, oppress, or abuse you or any third parties they contact.

For example, some Indiana debt collection companies may use these tactics which are prohibited:

• use threats of violence or harm
• publish a list of consumers who refuse to pay their debts (except to a credit bureau)
• use obscene or profane language; or repeatedly use the telephone to annoy someone

False statements

Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:

• falsely imply that they are attorneys or government representatives
• falsely imply that you have committed a crime falsely represent that they operate or work for a credit bureau
  misrepresent the amount of your debt
• indicate that papers being sent to you are legal forms when they are not or
• indicate that papers being sent to you are not legal forms when they are.

Debt collectors also may not state that:

• you will be arrested if you do not pay your debt;
• they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so;
• give false credit information about you to anyone, including a credit bureau;
• send you anything that looks like an official document from a court or government agency when it is not; or
  use a false name;
• collect any amount greater than your debt, unless your state law permits such a charge;
• deposit a post-dated check prematurely;
• use deception to make you accept collect calls or pay for telegrams;
• take or threaten to take your property unless this can be done legally; or contact you by postcard.

What control do you have over payment of debts?
If you owe more than one debt, any payment you make must be applied to the debt you indicate. Debt collectors may not apply a payment to any debt you believe you do not owe.

What can you do if you believe debt collectors violated the law?

You have the right to sue debt collectors in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney's fees also can be recovered. A group of people also may sue debt collectors and recover money for damages up to $500,000, or one percent of the collector's net worth, whichever is less.

Where can you report a debt collector for an alleged violation?

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices. To get free information on consumer issues click here or call call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY:1-866-653-4261.
Consider the current climate where hundreds or thousands of people are facing late payments on mortgages, credit cards, and other debts. Imagine how many letters the FTC receives every day. The FTC is not going to do a lot for you.

So what exactly are you supposed to do?

I'll discuss these options in the next lesson.

Well, the title is a bit long, but the course has 7 concise lessons that you can refer back to at any time. To start this free, online mini-course, please complete the short form below and you can start immediately -

Yes Kate - I want to start today!

What others are saying...

Hi Kate,

I do want to thank you so much for your quick and thorough responses to my questions. I am amazed at the amount of information you manage to deliver. Your  program is terrific.

You give an awful lot of personal attention that can never come from a computer program.

Thanks for everything - I mean it!

Melissa

Louisville, KY

Dear Ms Rieger,

God Bless You!

You treated me like I was someone important.  I thank you for that and for showing me how to improve my FICO scores. You are truly amazing!

Sincerely,
 

Roberta D.

Jeffersonville, IN  

Credit Rejuvenations Rocks!

Dave

Warmest Regards,